Form 4: SoundHound AI COO Michael Zagorsek Reports Routine Stock Transactions for Equity Vesting and Tax Obligations

SoundHound AI, Inc.'s Chief Operating Officer, Michael Zagorsek, reported the vesting of performance stock units and subsequent sales to cover tax withholding obligations, alongside an employee stock purchase plan acquisition.

Summary

• Michael Zagorsek, Chief Operating Officer of SoundHound AI, Inc. (SOUN), reported transactions on June 20, 2025.
• He acquired 100,000 shares of Class A Common Stock at a price of $0.00 per share, resulting from the vesting of Performance Stock Units (PSUs) originally granted on August 4, 2022, due to the achievement of performance criteria.
• Concurrently, Mr. Zagorsek disposed of 51,131 shares of Class A Common Stock at $9.3559 per share to satisfy tax withholding obligations related to the vesting of PSUs granted on August 4, 2022.
• Additionally, he disposed of 66,049 shares of Class A Common Stock at $9.3559 per share to satisfy tax withholding obligations related to the vesting of Restricted Stock Units (RSUs) granted on August 4, 2022, September 7, 2022, August 3, 2023, and August 1, 2024.
• Following these transactions, Mr. Zagorsek's direct beneficial ownership of Class A Common Stock stands at 1,346,455 shares.
• This total includes 3,110 shares of common stock acquired in May 2025 through the SoundHound AI, Inc. 2022 Employee Stock Purchase Plan.

Sentiment

Score: 6

Explanation: The document reports routine insider transactions related to equity compensation. The vesting of performance units is a positive indicator of performance criteria being met, while the sales are for tax purposes and not discretionary, leading to a neutral-to-slightly positive sentiment.

Positives

• The vesting of 100,000 Performance Stock Units indicates that SoundHound AI, Inc. has met certain performance criteria, which is a positive sign for the company's operational achievements.

Future Outlook

The document does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Management Comments

• The transactions reflect the automatic vesting of equity awards and subsequent sales to cover tax obligations, a standard practice for executive compensation.

Industry Context

This Form 4 filing details routine insider stock transactions related to equity compensation, which is a common practice across the technology and AI sectors for attracting and retaining key talent. The vesting of performance-based units suggests the company has met internal targets, aligning with broader industry trends where executive compensation is tied to company performance.

Stakeholder Impact

• Shareholders: The report provides transparency into executive compensation and stock ownership, which is standard for publicly traded companies. The vesting of performance units could be seen as a positive signal regarding company performance.
• Employees: The mention of the Employee Stock Purchase Plan indicates a mechanism for broader employee participation in company ownership.

Key Dates

Keywords

SoundHound AI, SOUN, Form 4, Insider Transaction, Michael Zagorsek, Chief Operating Officer, Equity Compensation, Performance Stock Units, Restricted Stock Units, Stock Vesting, Tax Withholding, Employee Stock Purchase Plan